Surprising News about Bonuses that Engage Employees

Bonuses that Engage Employees

Bonuses that Engage Employees
Most leaders want to use bonuses that engage employees to strive to do their best work and be loyal over the long-term.

The Most Common Bonuses
Talent management strategies and total rewards programs typically hand out bonuses to spur motivation and reward high performance. Most often these bonuses come in the form of financial gifts and the recipients are expected to spend the money on themselves in a way that makes sense for them.

Are The Bonuses Effective?
What are the bonuses that engage employees?  Do monetary rewards achieve leadership’s objective of encouraging improved behavior and higher levels of performance?  Some employee engagement training specialists say that the opposite is true.

Why There Is a Low Correlation Between Bonuses and Engagement

  • Because other employees (the ones who do not receive the rewards) are apt to be jealous and competitive and thus damage the very team dynamic required for higher performance.
  • Research by Tim Judge found less than 2% overlap between pay and employee engagement levels.
  • The Journal of Business Research found rewarding team performance improves overall results better than rewarding individual performance.

So What Bonuses Work Best?
What type of bonuses that engage employees work best to lift performance? How should leaders use bonuses that engage employees?  Surprising to us, some studies show:

  • Giving bonus vouchers that can be re-directed to the recipient’s favorite charity actually results in happier and more engaged employees overall.
  • Monetary gifts that are to be spent on other employees also help to increase engagement. Think about throwing a team party or catering a Friday picnic lunch or happy hour.  Bonus winners are heroes and their entire team gets to enjoy the benefits of their success.

Our Take
A good balance of individual and team rewards that align with the overall strategy and culture is a good place to start.  For some corporate cultures and performance environments, bonuses aimed at charities and team events can certainly play a role in increasing employee engagement levels.

Bonuses for Top Performers Caveat
Beware however to make sure that your top performers feel like their individual contribution is being fairly valued and rewarded.  To maintain high levels of employee engagement, your top performers must believe that if they contribute to the organization’s success, they will be recognized and that considering the value they bring to the organization, they are rewarded fairly.

The Bottom Line
As long as your reward and recognition systems are aligned with your strategy, are perceived as fair, and disproportionately reward your top performers in terms of results and behaviors, you will have the opportunity to creatively engage and motivate your top talent to perform at their peak.

To learn more about creating a high performance culture, download 2 Leadership Moves to Create a High Performing Culture

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Congratulations on your pro-activity in establishing this program and developing such an effective New Employee Orientation course.

Farhat Ali
President and Chief Executive Office

Fujitsu

I’ve partnered with LSA Global at two companies now, and I consider them a valuable and trusted training and consulting resource. They recommended just the right solution to address our management development needs and have wonderful facilitators that match YuMe’s culture and style of our management team. I would highly recommend LSA Global to any company wanting to deliver quality learning solutions with a valuable learning and development partner.

Maya Paul
HR Director

VNUS Medical has been very pleased with the effective management development programs that LSA Global has delivered for us over the last four years. The programs have been universally facilitated by experienced and best in class instructors. The knowledge gained by our management team has been put into practice very quickly. VNUS is very happy to be working in partnership with LSA because they consistently deliver excellent programs that receive exceptional feedback from our management team.

Cindee Van Vleck
Director Human Resources

LSA helped change our entire culture around meetings, making them more effective and efficient, thus enabling us to concentrate on driving more business.

Terry Wassman
VP of Human Resources

Thank you to LSA Global for their partnership and support in helping us to design and roll-out our valuable management development training program. I personally have partnered with LSA Global at four of my previous companies. It continues to be a delight working with LSA. We look forward to partnering with them at Blackhawk Networks for future training and consulting needs.

Suzanne Kinner
VP Human Resources

Blackhawk Network

Our company engaged LSA to do a specialized “train the trainer” program, and the consultant’s performance outdid our exceptionally high standards for such a program. Very crucial to the success of this program was the work done upfront to discuss our needs and to interview key members of our organization so that the program specifically met our goals. Our facilitators continue to comment on the success of the program. Thanks also for the follow-up.

Frank Abbott
Chief Financial Officer

LSA has become the gold standard in team building and management training at Genomic Health! I have a hard time finding facilitators that come close to their level of customization, expertise and experience.

Emily Couey
Director of Human Resources

I have worked with LSA Global at previous companies and welcomed the opportunity to bring them in to support my new organization. We worked closely with LSA to design a solution for our Client Partner Teams and Management Training on both coasts. LSA designed a customized solution for our business and organizational culture. LSA is a quality organization, one that I’d recommend to any company looking for a first class training and consulting partner that makes an impact.

Laurie Torres
Chief People Officer

We have worked with LSA Global for our learning and development needs and have always had great success. They helped us recently with customized Management Workshops that we held for the second time. It was fantastic, and I would highly recommend LSA to anyone that is attempting to get immediate and impactful improvements.

Mary Johnston
HR Manager, BU Radiology Informatics

SeaTel has found our partnership with LSA Global to be very valuable and beneficial. We turned to LSA to customize a supervisory/leadership solution to meet our needs. LSA delivered a customized top quality solution. I’d recommend LSA Global to any company looking for a best-in-class training and consulting partner.

Kortney Riddle
HR Manager

The Managing Virtual Teams program was extremely valuable. Your consultant/ facilitator’s fundamental knowledge of Synopsys as a company provided an incredible base to build upon while tackling the complications of managing and working with globally distributed teams. My team walked away walked away with highly useful practices and tools. It was an excellent use of our time.

Debra Martucci
Vice President, Information Technology

Harmonic has worked with LSA for over 8 years. We have found their partnership extremely beneficial. We recently implemented a Management Development Program that was designed and customized to support our company’s strategic initiative of hiring, building, and retaining key intellectual property and human talent. We worked closely with LSA to target and implement the right solutions with the greatest impact. I would recommend LSA to any company that’s looking for a trusted training and development partner.

Janice Passarello
Director of Human Resources

The Next Generation Management Development courses have helped me communicate more effectively with my peers and teammates. By utilizing effective communication techniques such as clarifying and confirming, and asking open ended questions, I have been able to clarify and understand information in situations where I would have otherwise asked limited questions and made false assumptions.

Robert Breckner
Firmware Engineering Manager

The LSA Global team was very receptive and flexible to our needs every step of the way. Their staff and facilitator demonstrated attention to detail, responsiveness, and professional courtesy. The participants were thrilled with the outcome and rated the communication skills workshop and the facilitator as ‘Excellent’. I’d highly recommend working with the LSA Global team to meet your professional development needs.

John Mastrorilli
FRDP Leader

Intuit

LSA custom designed a Management Development program that is absolutely “on target” for our technical managers. Their facilitator has done a superb job delivering the material in a way that is fast paced, highly interactive, and fun. She presents practical solutions to the people situations that our managers face every day. I regard LSA as an excellent partner that understands our business needs and a virtual member of our HR department.

Judith Onton
Vice President Human Resources

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